Drafter
Clerk 05/24/2004
title
A MOTION accepting a bid for the purchase of the county's Limited Tax General Obligation (Public Transportation Sales Tax) Bonds, 2004, in the aggregate principal amount of $49,695,000, and establishing certain terms of such bonds, all in accordance with Ordinance 14887.
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WHEREAS, the county council by Ordinance 14887 passed May 3, 2004 (the "Bond Ordinance"), authorized the issuance and sale of limited tax general obligation (public transportation sales tax) bonds (the "Bonds") of the county in the aggregate principal amount of not to exceed $50,000,000 for the purpose of financing portions of the Public Transportation Fund Capital Improvement Program of the county; and
WHEREAS, the Bond Ordinance provided that the Bonds be sold as determined by the county's manager of finance and business operations (the "Finance Manager") in consultation with the county's financial advisors; and
WHEREAS, the Finance Manager has determined that the Bonds be sold by competitive bid; and
WHEREAS, pursuant to the Bond Ordinance, a preliminary official statement dated May 18, 2004 (the "Preliminary Official Statement"), has been prepared for the public sale of the Bonds, the official notice of such sale (the "Notice of Sale") has been duly published, and bids have been received in accordance with the Notice of Sale; and
WHEREAS, after the Finance Manager's review and analysis of the bids received, the council, deems it necessary and desirable to authorize the sale of the Bonds in the principal amount of $49,695,000 to ABN AMRO Financial Services, Inc., of New York, New York (the "Underwriter"), as the bidder offering the lowest true interest cost therefor;
WHEREAS it is in the best interest of the county that the Bonds be sold to the Underwriter on the terms set forth in the Bond Ordinance and this motion;
NOW, THEREFORE, BE IT MOVED by the Council of King County:
A. Definitions. Except as expressly authorized herein, capitalized terms used in this motion have the meanings set forth in the Bond Ordinance.
B. Approval of Bond Purchase Agreement and Authorization of Bonds. The issuance of the Bonds, designated as the county's Limited Tax General Obligation (Public Transportation Sales Tax) Bonds, 2004, in the aggregate principal amount of $49,695,000. The terms and conditions set forth in the Official Notice of Bond Sale (the "Notice"), attached hereto as Exhibit A are hereby ratified and confirmed, and the bid to purchase the Bonds set forth in the Underwriter's bid, attached hereto as Exhibit B, is hereby accepted. All other bids that have been received are attached hereto as Exhibit C. The Bonds shall bear interest at the rates set forth in Exhibit B and shall conform in all other respects to the terms and conditions specified in the Notice and the Bond Ordinance. The Bonds shall be subject to optional redemption as set forth in the Notice.
Following receipt of the Underwriter's bid, the county has exercised its right under the Notice to adjust the maturity amounts of the Bonds. Accordingly, the Bonds shall mature or be subject to mandatory redemption on June 1 in the years and amounts and bear interest at the rates per annum as follows:
Years |
Amounts |
Rates |
2005 |
$ 785,000 |
2.500% |
2006 |
810,000 |
3.000 |
2007 |
835,000 |
3.000 |
2008 |
860,000 |
3.500 |
2009 |
890,000 |
3.500 |
2010 |
925,000 |
4.000 |
2011 |
965,000 |
4.000 |
2012 |
1,005,000 |
4.250 |
2013 |
1,050,000 |
4.500 |
2014 |
1,100,000 |
5.000 |
2015 |
1,160,000 |
5.500 |
2016 |
1,220,000 |
5.000 |
2017 |
1,290,000 |
5.500 |
2018 |
1,360,000 |
5.500 |
2019 |
1,440,000 |
5.500 |
2020 |
1,520,000 |
5.500 |
2021 |
1,605,000 |
5.500 |
2022 |
1,695,000 |
5.500 |
2023 |
1,790,000 |
5.500 |
2024 |
1,895,000 |
5.500 |
2025 |
1,995,000 |
5.000 |
2026 |
2,095,000 |
5.000 |
2027* |
2,210,000 |
5.375 |
2028* |
2,330,000 |
5.375 |
2029* |
2,460,000 |
5.375 |
2030** |
2,595,000 |
5.125 |
2031** |
2,730,000 |
5.125 |
2032** |
2,870,000 |
5.125 |
2033** |
3,025,000 |
5.125 |
2034** |
3,185,000 |
5.125 |
* Term Bonds maturing in 2029
** Term Bonds maturing in 2034
C. Undertaking to Provide Ongoing Disclosure.
1. Contract/Undertaking. This Section C constitutes the county's written undertaking for the benefit of the owners and Beneficial Owners of the Bonds as required by Section (b)(5) of the Rule.
2. Financial Statements/Operating Data. The county agrees to provide or cause to be provided to each NRMSIR and to the SID, if any, in each case as designated by the Commission in accordance with the Rule, the following annual financial information and operating data for the prior fiscal year (commencing in 2004 for the fiscal year ended December 31, 2003):
(a) Annual financial statements prepared in accordance with the Budget Accounting and Reporting System ("BARS") prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) and generally of the type included in the official statement for the Bonds under the heading "Appendix B: Audited 2002 Financial Statements";
(b) A summary of budgeted general fund revenues and appropriations;
(c) A summary of the assessed valuation of taxable property in the county;
(d) A summary of the ad valorem property tax levy and delinquency rate;
(e) A schedule of the aggregate annual debt service on tax-supported indebtedness of the county;
(f) A summary of outstanding tax-supported indebtedness of the county; and
(g) Public Transportation Sales Taxes collected by the county pursuant to RCW 82.14.045.
Items (b) through (g) shall be required only to the extent that such information is not included in the annual financial statements.
Such annual information and operating data described above shall be provided on or before seven months after the end of the county's fiscal year. The county's fiscal year currently ends on December 31. The county may adjust such fiscal year by providing written notice of the change of fiscal year to each then existing NRMSIR and the SID, if any. In lieu of providing such annual financial information and operating data, the county may cross-reference to other documents provided to the NRMSIR, the SID or to the Commission, and, if such document is a final official statement within the meaning of the Rule, available from the MSRB.
If not provided as part of the annual financial information discussed above, the county shall provide the county's audited annual financial statement prepared in accordance with BARS when and if available to each then existing NRMSIR and the SID, if any.
3. Material Events. The county agrees to provide or cause to be provided, in a timely manner, to the SID, if any, and to each NRMSIR or to the MSRB notice of the occurrence of any of the following events with respect to the Bonds, if material:
(a) Principal and interest payment delinquencies;
(b) Non-payment related defaults;
(c) Unscheduled draws on debt service reserves reflecting financial difficulties;
(d) Unscheduled draws on credit enhancements reflecting financial difficulties;
(e) Substitution of credit or liquidity providers, or their failure to perform;
(f) Adverse tax opinions or events affecting the tax-exempt status of the Bonds;
(g) Modifications to rights of Bond holders;
(h) Optional, contingent or unscheduled calls of any Bonds other than scheduled sinking fund redemptions for which notice is given pursuant to Exchange Act Release 34
(i) Defeasances;
(j) Release, substitution or sale of property securing repayment of the Bonds; and
(k) Rating changes.
Solely for purposes of disclosure, and not intending to modify this undertaking, the county advises with reference to items (c) and (j) above that no debt service reserves secure payment of the Bonds and no property secures repayment of the Bonds.
4. Notification Upon Failure to Provide Financial Data. The county agrees to provide or cause to be provided, in a timely manner, to each NRMSIR or to the MSRB and to the SID, if any, notice of its failure to provide the annual financial information described in subsection 2 above on or prior to the date set forth in subsection 2 above.
5. Termination/Modification. The county's obligations to provide annual financial information and notices of material events shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. This section, or any provision hereof, shall be null and void if the county (i) obtains an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require this section, or any such provision, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds; and (ii) notifies each then existing NRMSIR and the SID, if any, of such opinion and the cancellation of this section.
Notwithstanding any other provision of this motion, the county may amend this Section C, and any provision of this Section C may be waived, with an approving opinion of nationally recognized bond counsel and in accordance with the Rule.
In the event of any amendment or waiver of a provision of this Section C, the county shall describe such amendment in the next annual report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the county. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a material event under subsection 3, and (ii) the annual report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.
6. Bond Owner's Remedies Under This Section. The right of any Bond Owner or Beneficial Owner of Bonds to enforce the provisions of this section shall be limited to a right to obtain specific enforcement of the county's obligations hereunder, and any failure by the county to comply with the provisions of this undertaking shall not be an event of default with respect to the Bonds hereunder. For purposes of this section, "Beneficial Owner" means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding Bonds through nominees or depositories.
D. Further Authority. The county officials, their agents, and representatives are hereby authorized and directed to do everything necessary for the prompt issuance and delivery of the Bonds and for the proper use and application of the proceeds of such sale.
E. Severability. The covenants contained in this motion shall constitute a contract between the county and the owners of each and every Bond. If any provision in this motion to be performed on the part of the County shall be declared by any court of competent jurisdiction to be contrary to law, then such provision shall be null and void and shall be deemed separable from the remaining provisions of this motion and shall in no way affect the validity of the other provisions of this motion or of the Bonds.
50437933.01